17.8 Billion in CMBS Mortgages set to expire next year

A Realpoint LLC analysis of 75,002 mortgages that serve as collateral for 700 CMBS transactions in the United States found that 6,457 of those loans, representing $73.7 billion or 8.8 percent of the CMBS universe, are set to mature by next March. Of those, 1,125 loans with a balance of $17.8 billion could face problems because their collateral properties might not generate enough cash flow to support new mortgages that are as big as their existing loans. On the positive side, the report said because most of the remaining loans were originated 10 or more years ago, when interest rates were higher than they are today, they should have no problems getting refinanced. Those loans have also benefited from a general increase in property values.

by Derek Waltchack